Investment Rating - The report maintains a "Recommended" investment rating for the media industry [2] Core Insights - The media industry has shown a decline of 1.41% from March 23 to March 29, 2026, mirroring the performance of the Shanghai and Shenzhen 300 index [4][15] - Key sectors within the media industry, including gaming, television broadcasting, film, advertising, digital media, and publishing, experienced declines ranging from 1.01% to 2.10% during the same period [4][15] Summary by Sections 1. Market Performance - The media industry (Shenwan) decreased by 1.41% from March 23 to March 29, 2026, while the Shanghai and Shenzhen 300 index also fell by 1.41% [4][15] - The performance of sub-sectors includes: - Gaming: -1.01% - Television Broadcasting: -1.89% - Film: -1.40% - Advertising: -1.79% - Digital Media: -2.10% - Publishing: -1.21% [4][15] 2. Key Industry Data 2.1 AI Application Data - OpenRouter platform token usage reached 22.7 trillion, with a week-on-week increase of 11.27% [5][20] - The top five models in terms of token usage were MiMo-V2-Pro, Step 3.5 Flash, MiniMax M2.7, DeepSeek V3.2, and Claude Sonnet 4.6, with domestic models occupying four of the top five spots [5][20] 2.2 Gaming Data - Tencent's "Rock Kingdom: World" public test ranked first in the free list and entered the top three in the sales list [6][24] - The top five mobile games on iOS as of March 28, 2026, were "Peace Elite," "Love and Deep Space," "Rock Kingdom: World," "Honor of Kings," and "Delta Action" [6][24] 2.3 Film Data - The total box office for domestic films was 284 million yuan during the week of March 23 to March 29, 2026 [7][30] - The top three films by box office were "Rescue Plan" (81.57 million yuan), "Beaver Transformation Plan" (49.79 million yuan), and "Racing Life 3" (39.81 million yuan) [7][30] 3. Industry Key Events and Announcements - Google launched the Gemini 3.1 Flash Live real-time voice model, enhancing its capabilities in real-time voice applications [34] - ByteDance's CapCut announced the launch of Seedance 2.0 for international markets [34] - Kuaishou reported a revenue of 142.776 billion yuan for 2025, a year-on-year increase of 12.5% [34][35] - Heartbeat Company reported a revenue of 5.764 billion yuan for 2025, with a year-on-year profit increase of 86% [34][35] 4. Investment Recommendations - The report highlights a positive outlook on themes such as AI applications and cultural exports, recommending focus on gaming, IP, short dramas, marketing, and publishing sectors [11][36] - Specific companies to watch include Giant Network, Perfect World, and Kuaishou among others [11][36]

Investment Rating - The report assigns a "Buy" rating to the company with a current price of HKD 53.05 and a fair value of HKD 76.49 [9]. Core Insights - The company's Q4 revenue exceeded expectations, reaching RMB 39.6 billion, with a year-over-year growth of 12% and a quarter-over-quarter growth of 11% [9]. - The company is firmly advancing its AI strategy, which is expected to enhance its commercial capabilities [9]. - The report anticipates total revenue for 2026 and 2027 to reach RMB 1,484 billion and RMB 1,579 billion, representing growth rates of 4% and 6% respectively [18]. Financial Projections - Revenue projections for the company are as follows: - 2024: RMB 126,898 million - 2025: RMB 142,776 million - 2026: RMB 148,357 million - 2027: RMB 157,887 million - 2028: RMB 168,481 million - The expected growth rates for these years are 11.8%, 12.5%, 3.9%, 6.4%, and 6.7% respectively [4]. - Non-GAAP net profit is projected to be: - 2026: RMB 17,186 million - 2027: RMB 18,918 million - 2028: RMB 22,194 million - The growth rates for net profit are expected to be 72.5%, 16.5%, -16.8%, 10.1%, and 17.3% respectively [4]. User Metrics - The average monthly active users (MAU) for the main app are projected to be: - 2024: 710 million - 2025: 725 million - 2026: 732 million - 2027: 732 million - 2028: 732 million - The year-over-year growth rates for MAU are expected to decline from 5% in 2024 to 0% by 2027 [14]. Revenue Breakdown - The revenue breakdown for 2026 is projected as follows: - Advertising: RMB 86,700 million - Live streaming: RMB 36,225 million - Other services: RMB 25,432 million - E-commerce GMV: RMB 1,708,586 million [15]. - The report highlights that the advertising revenue is expected to grow at a slower pace due to market conditions, while AI applications are anticipated to drive growth in other segments [18].

Investment Rating - The report maintains a positive outlook on AI applications and cultural export themes, particularly focusing on sectors such as gaming, IP, short dramas, marketing, and publishing [6][33]. Core Insights - The media industry experienced a decline of 3.78% from March 16 to March 22, 2026, compared to a 2.19% decline in the CSI 300 index. Sub-sectors such as gaming, television broadcasting, and film exhibited declines of -4.09%, -2.93%, and -5.15% respectively [2][13]. - The OpenRouter platform saw a token call volume of 20.4 trillion, reflecting a week-on-week increase of 20.17%. Notably, the MiMo-V2-Pro model topped the platform's usage rankings [3][18]. - The Chinese gaming market reported a sales revenue of 332.31 billion yuan in February 2026, marking an 18.96% year-on-year growth. The mobile gaming sector alone generated 227.29 billion yuan, with a 9.05% increase [4][24]. - The domestic film industry generated a total box office of 327 million yuan during the week of March 16-22, 2026, with several new films set to release in the following week [5][28]. Summary by Sections Market Performance - The media industry (Shenwan) declined by 3.78% during the specified week, while the CSI 300 index fell by 2.19%. The Shanghai Composite Index and Shenzhen Component Index also saw declines of -3.38% and -2.90% respectively [2][13]. Key Industry Data AI Applications - The OpenRouter platform's token call volume reached 20.4 trillion, up 20.17% week-on-week. The top five models in usage included MiMo-V2-Pro, with four out of five being domestic models [3][18]. Gaming Data - The top five mobile games on iOS as of March 21, 2026, were "Honor of Kings," "Peacekeeper Elite," "Fearless Contract: Source Action," "Crossfire: Gunfight King," and "Hearthstone." The gaming market's revenue for February was 332.31 billion yuan, with a notable increase in client and mobile game revenues [4][22][24]. Film Data - The total box office for domestic films was 327 million yuan for the week, with the top film being "Racing Life 3," which earned 69.74 million yuan [5][28]. Industry Events and Announcements - Significant developments included the launch of Xiaomi's MiMo-V2-Pro, which is designed for high-intensity agent work scenarios, and the release of OpenAI's GPT-5.4 mini and nano models [32][33]. Investment Recommendations - The report suggests focusing on AI applications, cultural exports, and specific companies such as Giant Network, Perfect World, and others within the gaming and media sectors [6][33].

Investment Rating - The report maintains a "Buy" rating for the company, with a current price of HKD 30.32 and a fair value estimate of HKD 42.05 [6]. Core Insights - The company's 2025 performance met expectations, with total revenue reaching RMB 7.366 billion, a year-over-year decline of 9%, and a Non-GAAP net profit of RMB 858 million, down 25% year-over-year [6][7]. - The core IP operation business is progressing steadily, with online business remaining stable, while New Classics Media experienced fluctuations due to product cycles and film project performance [6][7]. - The report highlights significant growth in IP derivative products, with GMV reaching RMB 1.1 billion in 2025, more than doubling from RMB 500 million in the previous year [6][9]. Business Performance in 2025 - The company's total revenue for 2025 was RMB 7.366 billion, aligning closely with Bloomberg consensus expectations of RMB 7.365 billion [7][11]. - Online business revenue was stable at RMB 4.047 billion, with a slight year-over-year increase of 0% [8][11]. - The report notes that the company's cost control measures were effective, with sales expenses decreasing by 11% year-over-year [8]. Revenue and Profit Forecast - The company is expected to achieve total revenues of RMB 7.949 billion and RMB 8.264 billion in 2026 and 2027, respectively, representing year-over-year growth of 8% and 4% [13][16]. - Non-GAAP net profit is projected to reach RMB 1.455 billion and RMB 1.617 billion in 2026 and 2027, reflecting significant growth rates of 69% and 11% [13][16]. - The report anticipates that the company's gross margin will improve to 50% in 2026 and 52% in 2027 [13][16]. Valuation and Investment Recommendation - The report employs a Sum-of-the-Parts (SOTP) valuation method, estimating the fair value of the company at HKD 42.05 per share, based on comparable IP and film production company valuations [6][17]. - The core business is expected to benefit from the continued growth of IP derivative products, short dramas, and AI-generated content, which are anticipated to drive new revenue streams [6][17].

Investment Rating - The report maintains a "Buy" rating for several companies in the media and internet industry, including Giant Network, Kying Network, Perfect World, and others [9][12]. Core Insights - The media industry experienced a decline of 6.97% from March 2 to March 8, 2026, compared to a 1.07% decline in the CSI 300 index [1][15]. - Google Play announced a reduction in its revenue share, lowering the in-app purchase cut to 20% and subscription fees to 10%, which is expected to benefit game developers [3][37]. - The report highlights significant growth in AI applications, with OpenRouter platform token calls reaching 14.8 trillion, a week-on-week increase of 8.82% [2][22]. Market Performance - The media industry (Shenwan) saw a decline of 6.97% during the week of March 2-8, 2026, while the CSI 300 index fell by 1.07% [1][15]. - Sub-sectors such as gaming, television broadcasting, film, advertising, digital media, and publishing experienced declines of 6.04%, 7.38%, 8.01%, 8.01%, 8.24%, and 5.77% respectively [1][15]. Key Industry Data AI Applications - OpenRouter platform token calls reached 14.8 trillion, with a week-on-week increase of 8.82% [2][22]. - Domestic AI applications saw significant growth, with Byte's Doubao increasing by 87.38% and Alibaba's Qianwen soaring by 552.83% in active users [2][25]. Gaming - The top five mobile games on iOS in China as of March 7, 2026, were "Honor of Kings," "Peacekeeper Elite," "Delta Force," "Endless Winter," and "Gold Shovel Battle" [3][27]. - Giant Network's "Supernatural Action Group" ranked between 15-24 on the iOS sales chart during the same week [3][27]. Film - The total box office for domestic films was 827 million yuan during the week of March 2-8, 2026, with "Flying Life 3" leading at 348.62 million yuan [4][33]. Industry Events and Announcements - OpenAI released the latest model GPT-5.4, enhancing capabilities in reasoning and programming [37]. - CoreWeave and Perplexity entered a multi-year strategic partnership for AI cloud services [37]. - Google Play's revenue share reduction is expected to significantly impact the gaming industry positively [3][37]. Investment Recommendations - The report recommends focusing on themes such as AI applications and cultural exports, particularly in gaming, IP, short dramas, marketing, and publishing sectors [9][39].

Investment Rating - The report maintains a "Buy" rating for key companies in the media and internet industry, including Giant Network, Perfect World, and others [9][12]. Core Insights - The media industry experienced a decline of 6.97% from March 2 to March 8, 2026, compared to a 1.07% decline in the CSI 300 index [15]. - Google Play announced a reduction in its revenue share, lowering the in-app purchase cut to 20% and subscription fees to 10%, which is expected to benefit game developers [3][37]. - The report highlights significant growth in AI applications, with OpenRouter platform token calls reaching 14.8 trillion, a week-on-week increase of 8.82% [22][25]. Market Performance - The media industry (Shenwan) saw a decline of 6.97% during the week of March 2-8, 2026, while the CSI 300 index fell by 1.07% [15]. - Sub-sectors such as gaming, television broadcasting, and film exhibited declines of 6.04%, 7.38%, and 8.01% respectively [15]. Key Industry Data AI Applications - OpenRouter platform token calls reached 14.8 trillion, with a week-on-week increase of 8.82% [22]. - Domestic AI applications showed significant growth, with Byte's Doubao increasing by 87.38% and Alibaba's Qianwen soaring by 552.83% in active users [25][26]. Gaming - The top five mobile games on iOS in China as of March 7, 2026, were "Honor of Kings," "Peacekeeper Elite," "Delta Force," "Endless Winter," and "Gold Shovel Battle" [27]. - Giant Network's "Supernatural Action Group" ranked between 15-24 on the iOS sales chart during the same week [27]. Film - The total box office for domestic films reached 827 million yuan during the week of March 2-8, 2026, with "Flying Life 3" leading at 348.62 million yuan [33][36]. Industry Events and Announcements - OpenAI released the latest model GPT-5.4, enhancing capabilities in reasoning and programming [37]. - CoreWeave and Perplexity entered a multi-year strategic partnership for AI cloud services [37]. - Google Play's revenue share adjustments are expected to significantly impact the gaming industry [37][38]. Investment Recommendations - The report recommends focusing on themes such as AI applications and cultural exports, particularly in gaming, IP, short dramas, marketing, and publishing sectors [9][39].

Investment Rating - The report assigns a "Buy" rating for the company, with a current price of 25.55 USD / 210.60 HKD and a fair value of 30.97 USD / 242.11 HKD [5][22]. Core Insights - The company has experienced accelerated growth in Daily Active Users (DAU), reaching 113 million in Q4 2025, a year-on-year increase of 10%. This growth is attributed to a strong content strategy and improved advertising performance, which exceeded market expectations [8][9]. - The report forecasts that the company's total revenue will reach 33.32 billion RMB in 2026, with a growth rate of 9.8%, and 36.70 billion RMB in 2027, with a growth rate of 10.1% [4][19]. - Non-GAAP net profit is projected to be 3.07 billion RMB in 2026 and 4.13 billion RMB in 2027, indicating a positive trend in profitability [4][19]. Financial Projections - Revenue projections for 2026 and 2027 are 33.32 billion RMB and 36.70 billion RMB, respectively, with corresponding growth rates of 9.8% and 10.1% [4][19]. - The EBITDA is expected to grow from 1.83 billion RMB in 2024 to 5.21 billion RMB in 2026, reflecting a significant increase in operational efficiency [4]. - The report anticipates a gradual improvement in profit margins, with Non-GAAP net profit margins expected to reach 9% in 2026 and 11% in 2027 [21]. Revenue Breakdown - Advertising revenue is projected to grow significantly, reaching 12.48 billion RMB in 2026 and 15.06 billion RMB in 2027, with growth rates of 24% and 21%, respectively [18][19]. - Live streaming and value-added services revenue are expected to grow at a slower pace, reaching 12.42 billion RMB in 2026 and 12.90 billion RMB in 2027, with growth rates of 4% for both years [18]. - Game revenue is forecasted to stabilize, with total revenue expected to reach 6.40 billion RMB in 2026 and 6.67 billion RMB in 2027, reflecting a cautious outlook due to product cycle changes [18]. Valuation Metrics - The report suggests a valuation of 29x PE for 2026, leading to a fair value estimate of 30.97 USD per ADS [22]. - The company is expected to maintain a strong operating leverage, with gross margins projected to improve to 38% in 2026 and 39% in 2027 [21].

Investment Rating - The report maintains a "Buy" rating for several companies in the media and internet industry, including Giant Network, Perfect World, and Kuaishou, among others [4][32]. Core Insights - The media industry experienced a decline of 5.10% from February 23 to March 1, 2026, while the Shanghai Composite Index rose by 1.98% during the same period [1][11]. - Key sectors within the media industry, such as gaming, film, and advertising, showed varied performance, with the film sector declining by 16.82% [1][11]. - The report highlights significant developments in AI applications, including the launch of new models by Google and the introduction of the SkyReels V4 model by Kunlun Wanwei, which supports multimodal video generation [2][30]. Market Performance - The media industry (Shenwan) saw a decline of 5.10% from February 23 to March 1, 2026, compared to a rise in the Shanghai Composite Index of 1.98% [1][11]. - The breakdown of performance in sub-sectors includes gaming at -3.41%, film at -16.82%, and advertising at -3.43% [1][11]. Industry Key Data AI Applications - The OpenRouter platform recorded a weekly token call volume of 13.6 trillion, with significant contributions from Chinese models [2][16]. - Notable AI events include the release of Google's Gemini 3.1 Pro and the launch of the SkyReels V4 model by Kunlun Wanwei [2][30]. Gaming - The top five mobile games on iOS in China as of February 28, 2026, include "Honor of Kings" and "Peacekeeper Elite" [3][19]. - A total of 146 domestic games and 6 imported games received approval in the latest batch of game licenses [21]. Film - The total box office for domestic films reached 2.386 billion yuan during the week of February 23 to March 1, 2026, with "Flying Life 3" leading the box office [26][29]. - Upcoming films include 10 new releases scheduled for the week of March 2 to March 8, 2026 [26]. Investment Recommendations - The report expresses optimism about themes such as AI applications and cultural exports, recommending a focus on gaming, IP, short dramas, marketing, and publishing sectors [4][32].

Investment Rating - The report maintains a "Buy" rating for several companies in the media and internet industry, including Giant Network, Perfect World, and Kuaishou, among others [4][32]. Core Insights - The media industry experienced a decline of 5.10% from February 23 to March 1, 2026, while the Shanghai Composite Index rose by 1.98% during the same period [1][11]. - The report highlights the strong performance of AI applications and cultural exports, with a focus on sub-sectors such as gaming, IP, short dramas, marketing, and publishing [4][32]. - The upcoming release of the game "Yihuan" on April 23, 2026, has garnered over 25 million pre-registrations, indicating strong market interest [24][32]. Market Performance - The media industry (Shenwan) saw a decline of 5.10% from February 23 to March 1, 2026, while the Shanghai Composite Index increased by 1.98% [1][11]. - Sub-sectors such as gaming, television broadcasting, and film exhibited declines of -3.41%, -0.77%, and -16.82%, respectively [1][11]. Industry Key Data AI Applications - The OpenRouter platform recorded a weekly token call volume of 13.6 trillion, with a 2.86% decrease from the previous week [2][16]. - Major AI models such as MiniMax M2.5 and Gemini 3 Flash Preview ranked among the top five in token calls, with three Chinese models making the list [2][16]. Gaming Data - The top five mobile games on iOS in China as of February 28, 2026, included "Honor of Kings" and "Peacekeeper Elite" [3][19]. - A total of 146 domestic games and 6 imported games received approval in the latest batch of game licenses [21]. Film Data - The total box office for domestic films reached 2.386 billion yuan during the week of February 23 to March 1, 2026 [26][29]. - The top film for the week was "Fast and Furious 3," which earned 1.138 billion yuan, accounting for 47.6% of the total box office [26][29]. Industry Events and Announcements - Google released its flagship model Gemini 3.1 Pro, which outperformed other models in benchmark tests [30]. - Kunlun Wanwei launched the SkyReels V4 model, a multimodal video generation model that supports various input types and tasks [30]. Investment Recommendations - The report recommends focusing on themes such as AI applications and cultural exports, with specific attention to companies like Giant Network, Perfect World, and Kuaishou [4][32].

Investment Rating - The report maintains a "Buy" rating for several companies in the media sector, including Giant Network, Perfect World, and Kuaishou, among others [5][36]. Core Insights - The report highlights a positive outlook on AI applications and cultural exports, particularly focusing on sub-sectors such as gaming, IP, short dramas, marketing, and publishing [5][36]. - The media industry (Shenwan) saw a slight increase of 0.21% from January 26 to February 1, 2026, outperforming the Shanghai Composite Index, which decreased by 0.44% [12][36]. - The advertising and marketing segment led the growth with a 4.70% increase, while other segments like publishing and digital media experienced declines [12][36]. Market Performance - The media industry (Shenwan) increased by 0.21% during the week of January 26 to February 1, 2026, while the Shanghai Composite Index decreased by 0.44% [12]. - The advertising and marketing sector showed the highest growth at 4.70%, followed by the film and cinema sector at 2.49%, while publishing, digital media, gaming, and television broadcasting saw declines of -0.75%, -1.31%, -1.94%, and -3.66% respectively [12][36]. Industry Key Data AI Applications - Tencent's "Yuanbao" app reached the top of the domestic Apple free app chart, with a significant week-on-week download increase of 97.76% [2][17]. - The weekly token call volume for the OpenRouter platform increased by 10%, reaching 8.25 trillion tokens [2][17]. Gaming - The top five mobile games on the iOS platform as of January 31, 2026, included "Honor of Kings" and "Peacekeeper Elite," with "Supernatural Action Group" surpassing 10 million daily active users [3][19]. - A total of 182 games received approval in the first batch of licenses for 2026, including 177 domestic and 5 imported games [19][22]. Film and Television - The total box office for domestic films during the week of January 26 to February 1, 2026, was 283 million yuan, with "Zootopia 2" leading the box office [28][30]. - Six films have been scheduled for release during the Spring Festival, indicating a robust upcoming film slate [29][30]. Investment Recommendations - The report recommends focusing on AI applications and cultural exports, with specific attention to gaming, IP, short dramas, marketing, and publishing sectors [5][36]. - Companies highlighted for investment include Giant Network, Kuaishou, and Perfect World, among others [5][36].